State one transaction which results in a decrease in ‘Debt-Equity Ratio’ and no change in ‘Current Ratio’. Post category:Accountancy Reading time:1 mins read SOLUTION Conversion of Debentures into Shares. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhat does a low proprietary ratio indicate? Next PostState with reason whether repayment of long-term loan will result in increase, decrease or no change of debt-equity ratio. You Might Also Like P, Q and R are partners sharing profits and losses in the ratio of 3: 3: 2 respectively. Their respective capitals are in their profit-sharing proportions. On 1st April, 2018, the total capital of the firm and the balance of General Reserve are Rs. 80,000 and Rs. 20,000 respectively. During the year 2018-19, the firm made a profit of Rs. 28,000 before charging interest on capital @ 5%. The drawings of the partners are P — Rs. 8,000; Q — Rs. 7,000; and R — Rs. 5,000. On 31st March, 2019, their liabilities were Rs. 18,000. On this date, they decided to dissolve the firm. The assets realised Rs. 1,08,600 and realisation expenses amounted to Rs. 1,800. Prepare necessary Ledger Accounts to close the books of the firm. October 8, 2022 State whether conversion of debentures into equity shares by a financing company will result in inflow’, outflow’ or no flow’ of cash. October 4, 2022 What is a Comparative Balance Sheet? October 1, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
P, Q and R are partners sharing profits and losses in the ratio of 3: 3: 2 respectively. Their respective capitals are in their profit-sharing proportions. On 1st April, 2018, the total capital of the firm and the balance of General Reserve are Rs. 80,000 and Rs. 20,000 respectively. During the year 2018-19, the firm made a profit of Rs. 28,000 before charging interest on capital @ 5%. The drawings of the partners are P — Rs. 8,000; Q — Rs. 7,000; and R — Rs. 5,000. On 31st March, 2019, their liabilities were Rs. 18,000. On this date, they decided to dissolve the firm. The assets realised Rs. 1,08,600 and realisation expenses amounted to Rs. 1,800. Prepare necessary Ledger Accounts to close the books of the firm. October 8, 2022
State whether conversion of debentures into equity shares by a financing company will result in inflow’, outflow’ or no flow’ of cash. October 4, 2022